UPDATE 1-Peru's sol slips to 9-yr low despite central bank support

LIMA Aug 21 (Reuters) - Peru's sol slipped
0.31 percent on Friday to end the trading session at its weakest
level in more than nine years despite the central bank's sale of
$270 million in the local spot market to support the currency.

The sol's losses followed news of shrinking manufacturing
activity in China, one of the main buyers of Peru's key mineral
exports.

Peru's central bank has ramped up its market interventions
in recent weeks as the sol's slide accelerates ahead of an
expected interest rate hike in the United States and following
China's devaluation of the yuan.

The sol has weakened 2.44 percent against the dollar so far
this month even with the central bank selling $1.3 billion to
prop it up.

The central bank has said it expects volatility in the local
spot market to continue until the Federal Reserve decides on
rates in September.

In the meantime, central bank President Julio Velarde has
said the bank still has plenty of dollar reserves to deploy to
soften currency swings.

The sol finished trading at 3.269/3.270 per dollar, its
weakest since June 2006.
(Reporting By Ursula Scollo; Editing by Steve Orlofsky and Alan
Crosby)